Novoshakhtinsk refinery resumes operations after fire - sources

Novoshakhtinsk refinery resumes operations after fire - sources

MOSCOW (MRC) -- The Novoshakhtinsk oil refinery in the south of Russia resumed operations after a fire caused by a drone attack on June 22, two sources familiar with the matter told Reuters.

The refinery in the Rostov region said the first of two drones flying from the direction of Ukraine struck at 8.40 a.m. (0540 GMT) on Wednesday, hitting a crude distillation unit and triggering a blast and ball of fire. Both primary crude oil distillation units at the refinery were down after the attack, but at least one was back online as of Friday, the sources said.

“The refinery is back online after the fire. June refining will be little affected, while in July they will have maintenance. It is not clear how much it may affect the output”, one of the sources said. A representative for the refinery did not immediately respond to a Reuters request for comment.

The Novoshakhtinsk refinery has an annual capacity of up to 7.5 million tonnes, and processed 5.2 million tonnes of crude last year.

As per MRC, Russian has expanded the list of oil refineries eligible for so-called reverse excise tax after they agreed to invest around 300 billion roubles (USD4.5 billion) to upgrade capacity by 2026, the energy ministry said. Russia’s most significant oil industry tax overhaul took effect on January 1. It is phasing out exporting duty in the next five years and increasing its mineral extraction tax.
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EIA estimates show a decrease in global surplus crude oil production capacity in 2022

EIA estimates show a decrease in global surplus crude oil production capacity in 2022

MOSCOW (MRC) -- A new report by the EIA, titled Global Surplus Crude Oil Production Capacity, provides estimates of global surplus crude oil production capacity in both OPEC countries and non-OPEC countries, said Hydrocarbonprocessing.

Preliminary estimates for these data show that, as of May 2022, surplus capacity in non-OPEC countries decreased by 80% compared with 2021. The data show that, in 2021, 1.4 MMbpd of surplus production capacity was available in non-OPEC countries, about 60% of which was in Russia. As of May 2022, we estimate that all surplus production capacity in Russia was eliminated due to the sanctions implemented after Russia’s full-scale invasion of Ukraine. We determined that excess oil production capacity declined in other non-OPEC producing countries as well. We estimate that, as of May 2022, producers in non-OPEC countries had about 280,000 bpd of surplus production capacity.

We define surplus capacity as the maximum existing capacity that can be brought online within 30 days and sustained for at least 90 days. Our assessment of surplus crude oil production capacity does not include volumes of oil that are offline because of unplanned outages and disruptions, including sanctions, because these volumes cannot be brought to market voluntarily. For that reason, we exclude crude oil production that is offline in Iran, Libya, Venezuela, and now Russia, from surplus capacity estimates.

Since 2003, we have tracked OPEC surplus capacity in a separate publication: the Short-Term Energy Outlook (STEO). Global Surplus Crude Oil Production Capacity includes information about surplus production capacity located in both OPEC and non-OPEC member countries, based on STEO data. Our estimates of global surplus crude oil production capacity now date back to 1970 and provide a longer history of this measure. We define OPEC in terms of its current membership.

In our June STEO, we estimate that OPEC surplus capacity declined to 3.0 MMbpd by May 2022 from 5.4 MMbpd in 2021. As a result of the declines of surplus production capacity located in both OPEC and non-OPEC countries, global surplus crude oil production capacity in May 2022 was less than half of its 2021 average.

As per MRC, the Association of American Railroads (AAR) reported U.S. rail traffic for the week ending June 18, 2022. For this week, total U.S. weekly rail traffic was 501,207 carloads and intermodal units, down 2.5 percent compared with the same week last year. Total carloads for the week ending June 18 were 232,921 carloads, up 0.4 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 268,286 containers and trailers, down 4.9 percent compared to 2021.
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TotalEnergies says it prepared for strike at French refineries

TotalEnergies says it prepared for strike at French refineries

MOSCOW (MRC) -- TotalEnergies has taken logistics measures to make sure its network of petrol stations and its clients will be sufficiently supplied throughout the weekend despite a strike hitting its French oil refineries on Friday, said Hydrocarbonprocessing.

The CGT union, which wants an immediate increase in wages to compensate for rising inflation, has called for the 24-hour strike after talks with CEO Patrick Pouyanne fell through.

The CGT plans to halt deliveries by truck, train and pipeline, with only minimum flow for production units at three of TotalEnergies’ refineries and two depots.

The refineries set to be affected are the 240,000 barrel per day (bpd) Gonfreville refinery, the 119,000 bpd Feyzin refinery and La Mede biorefinery. Fuel storage depots at La Mede and Flanders may also be impacted, the CGT had said.

Details on the extent of Friday's walkout were not immediately available.

As per MRC, TotalEnergies has entered into an agreement with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New Industries Ltd. (ANIL). ANIL will be the exclusive platform of AEL and TotalEnergies for the production and commercialisation of green hydrogen in India. ANIL will target a production of 1 million t of green hydrogen per year (Mtpa) by 2030, underpinned by around 30 GW of new renewable power generation capacity, as its first milestone.
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Chemical railcar traffic in North America is up 2.8%

Chemical railcar traffic in North America is up 2.8%

MOSCOW (MRC) -- The Association of American Railroads (AAR) reported U.S. rail traffic for the week ending June 18, 2022, said AAR.

For this week, total U.S. weekly rail traffic was 501,207 carloads and intermodal units, down 2.5 percent compared with the same week last year. Total carloads for the week ending June 18 were 232,921 carloads, up 0.4 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 268,286 containers and trailers, down 4.9 percent compared to 2021.

Six of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included grain, up 2,411 carloads, to 22,012; nonmetallic minerals, up 860 carloads, to 32,505; and motor vehicles and parts, up 833 carloads, to 13,366. Commodity groups that posted decreases compared with the same week in 2021 included metallic ores and metals, down 2,707 carloads, to 20,915; coal, down 1,539 carloads, to 66,281; and miscellaneous carloads, down 382 carloads, to 8,908.

For the first 24 weeks of 2022, U.S. railroads reported cumulative volume of 5,529,499 carloads, up 0.02 percent from the same point last year; and 6,349,485 intermodal units, down 6.3 percent from last year. Total combined U.S. traffic for the first 24 weeks of 2022 was 11,878,984 carloads and intermodal units, a decrease of 3.5 percent compared to last year.

North American rail volume for the week ending June 18, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 328,846 carloads, down 0.8 percent compared with the same week last year, and 353,209 intermodal units, down 4.6 percent compared with last year. Total combined weekly rail traffic in North America was 682,055 carloads and intermodal units, down 2.8 percent. North American rail volume for the first 24 weeks of 2022 was 16,198,883 carloads and intermodal units, down 3.6 percent compared with 2021.

Canadian railroads reported 76,443 carloads for the week, down 0.2 percent, and 70,088 intermodal units, down 2.6 percent compared with the same week in 2021. For the first 24 weeks of 2022, Canadian railroads reported cumulative rail traffic volume of 3,431,630 carloads, containers and trailers, down 5.6 percent.

Mexican railroads reported 19,482 carloads for the week, down 15.2 percent compared with the same week last year, and 14,835 intermodal units, down 8.2 percent. Cumulative volume on Mexican railroads for the first 24 weeks of 2022 was 888,269 carloads and intermodal containers and trailers, up 2.1 percent from the same point last year.

As per MRC, North American polypropylene producers won't see this year a repeat of 2021, when stronger-than-expected demand as the pandemic eased after vaccines met extreme supply tightness, said Hydrocarbonprocessing.
This year is different not just because of startups in Louisiana and Canada that will add resin but also because demand isn't as strong.
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AkzoNobel adds new capacity for water-based texture paints in China

AkzoNobel adds new capacity for water-based texture paints in China

MOSCOW (MRC) -- AkzoNobel has invested in a new production line for water-based texture paints at its Songjiang site in Shanghai, China – boosting capacity for supplying more sustainable products, said the company.

The site is one of four water-based decorative paints plants in China and among the company’s largest globally. The new 2,500 square meter facility will produce Dulux products for various markets, such as interior decoration, architecture and leisure.

"As AkzoNobel's largest single country market, China has huge potential,” says Mark Kwok, AkzoNobel’s President of China/North Asia and Business Director for Decorative Paints China/North Asia. “The new production line will help to enhance our leading position in paints and coatings in China by expanding new markets and further driving us our towards our Grow & Deliver strategic ambitions."

The coatings industry in China is expected to continue expanding, largely driven by the country’s increasing focus on energy conservation and emission reduction. The production of low VOC, water-based paints will therefore need to keep expanding to meet the demand.

"Our new production line will not only enable us to better meet market demand, but also help to optimize our supply chain so we can serve customers more efficiently and effectively,” adds Fred Moreux, AkzoNobel’s Asia Manufacturing Director. "It’s also a great example of our People. Planet. Paint. approach to pioneering more sustainable products, optimizing resources and improving productivity."

Nearly EUR7.5 million has been invested in the Songjiang since the start of 2021. The new production line features an advanced system which lowers VOC emissions. Other recent projects include introducing new solar energy systems and a more automated high-speed filling line.

As per MRC, AkzoNobel has completed the acquisition of Colombia-based coatings producer Grupo Orbis for an undisclosed fee. Grupo Orbis has consolidated revenue of around EUR360m, with presence in 10 countries in Central America, South America and the Antilles, according to the statement by AkzoNobel.
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